Global leaders, experts descend on Riyadh for FII8 

Global leaders, experts descend on Riyadh for FII8 
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This year’s FII is held under the theme “Infinite Horizons: Investing Today, Shaping Tomorrow,” from Oct. 29 to 31 in Riyadh. Supplied
Global leaders, experts descend on Riyadh for FII8 
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This year’s FII is held under the theme “Infinite Horizons: Investing Today, Shaping Tomorrow,” from Oct. 29 to 31 in Riyadh. Supplied
Global leaders, experts descend on Riyadh for FII8 
3 / 3
This year’s FII is held under the theme “Infinite Horizons: Investing Today, Shaping Tomorrow,” from Oct. 29 to 31 in Riyadh. Supplied
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Updated 29 October 2024
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Global leaders, experts descend on Riyadh for FII8 

Global leaders, experts descend on Riyadh for FII8 
  • Event expected to witness signing of strategic deals across mulitple sectors

RIYADH: World leaders and industry experts are set to gather in Saudi Arabia’s capital city for the eighth edition of the Future Investment Initiative to discuss opportunities and challenges across the global financial landscape. 

Held under the theme “Infinite Horizons: Investing Today, Shaping Tomorrow,” from Oct. 29 to 31, this year’s FII is expected to ignite discussions on how investment can serve as a catalyst for a prosperous and sustainable future. 

In the lead-up to the event, FII Insitute CEO Richard Attias said deals worth $28 billion are expected to be announced during the gathering.

He also said that 7,100 participants worldwide are registered for the upcoming event. “It is 1,000 more than last year,” he told a press conference on Oct. 15.

Since its launch in 2017, the FII Institute has been organizing annual events in Riyadh, and over the years the program has emerged as one of the flagship conferences in the financial sector. 

Apart from the industry experts, this year’s event will also bring leaders and decision-makers in artificial intelligence, sustainability, energy, geoeconomics and space. 

 

The conference will feature over 500 speakers and facilitate over 200 sessions, plenary discussions, breakouts and conclaves addressing economic stability, geopolitical tensions, and equitable development. 

A press release marking the gathering noted that with the 79th UN General Assembly concluding and the US presidential elections immediately following FII8, the geoeconomic conversations and insights generated at the conference “will serve as a vital addition to the global dialogue, equipping leaders with forward-thinking strategies to navigate the upcoming global landscape.”

FII: The brainchild of the Public Investment Fund

Saudi Arabia’s sovereign wealth fund founded the Future Investment Initiative Institute as a part of the Kingdom’s Vision 2030, which aims to position the country as a global hub for business growth. 

As Saudi Arabia is on a path of transformation, the events organized by the institute have proved to be a strong component of the Kingdom’s regional and global growth in finance and investment. 

According to FII, this year’s conference will challenge attendees to think beyond conventional limits and explore investment opportunities that can bridge current challenges with future possibilities. 

“FII8 pioneers a new kind of mindset — where leaders and game changers break free of past limitations, fueling innovation that leads to boundless human potential and economic growth,” said the organization’s website.

It added: “The world’s visionaries will explore how nonlinear thinking can deploy capital to address the planet’s most critical issues — from infrastructure gaps to environmental threats — ultimately achieving the optimal point between planetary consumption and regeneration, and positively impacting humanity.” 

FII8: Speakers list 

The first day of the event will focus on strategies leaders need to tackle new challenges in an infinitely connected world.

The opening ceremony will begin at 9:00 a.m. Saudi time, and it will be followed by welcome remarks by Attias. 

Yasir Al-Rumayyan, governor of the Public Investment Fund and the chairman of FII Institute, will also deliver his speech on the first day of the event. 

Saudi Arabia’s Minister of Investment Khalid Al-Falih will use his address to discuss the role of policymakers in establishing a robust regulatory framework, navigating global economic shifts to instill optimism and create a path toward growth. 

7,100 participants from around the world are registered for the event.

Richard Attias, FII Insitute CEO

Turkiye’s Minister of Treasury and Finance Mehmet Simsek, Chief Information Officer mentor for asset management firm Board Bridgewater Associates Ray Dalio, and Makhtar Diop, managing director of International Finance Corp., will also speak on panels on the first day. 

On the first day, in a panel titled “First Board of Changemakers: Geoeconomics,” top industry leaders including Laurence Fink, CEO of Blackrock, Ruth Porat, president and Chief Information Officer of Alphabet and Google, Stephane Bancel, CEO of Moderna, as well as Stephen Schwarzman, chairman and CEO of the Blackstone Group, will share their thoughts on strategies that could be implemented to combat environmental challenges and economic inequalities.  

Muhammed Al-Jasser, chairman of the Islamic Development Bank will also speak on a panel named “Second Board of Changemakers: Banking and Investment,” where he will discuss persisting economic challenges the world is facing and the ways to tackle the problems. 

Mohammad Maziad Al-Tuwaijri, vice chairman of Saudi Arabia’s National Development Fund, along with Bernard Mensah, president of International for Bank of America will take part in a panel on global financial stability. 

The first day will also feature discussion on the vitality of accelerating the energy transition journey. 

This session will feature industry leaders including Amin Nasser, president and CEO of Saudi Aramco, Marco Arcelli, CEO of ACWA Power, Catherine MacGregor, CEO of Engie, and Patrice Motsepe, founder and executive chairman of African Rainbow Minerals. 

Other notable speakers who will be attending panels on the first day include Shou Chew, CEO of TikTok, Brian Hongdi Gu, co-president of Xpeng, Masayoshi Son, chairman and CEO of SoftBank Group Corp., as well as Mansoor Ebrahim Al-Mahmoud, CEO of Qatar Investment Authority, and Sarah Al-Suhaimi, chairperson of board of directors of Saudi Tadawul Group. 

The second day of the event will be based on the theme “New Algorithms” where discussions will take place around building future-ready talent to cultivate social resilience, with a focus on how leaders can harness the power of emerging technology for positive impact.

Some of the noted speakers on the second day include Mohamed Jameel Al-Ramahi, CEO of Masdar, Marcelo Claure, founder and CEO of Claure Group, Julie Sweet, chairman and CEO of Accenture, as well as Eric Schmidt, founder and CEO of Schmidt Family Foundation, and Gautam Sashittal, CEO of King Abdullah Financial District. 

Arif Amiri, CEO of Dubai International Financial Center Authority, Olayan Alwetaid, group CEO of STC, and Ossama Rabiee, chairman and managing director of Suez Canal Authority, will also attend panel discussions on the second day of the event. 

FII8’s third day is titled “Investment Day” where discussions will revolve around practical aspects of investing, offering hands-on guidance and tactical knowledge. 

Noted personalities who will speak on this topic include Tony Douglas, CEO of Riyad Air, Rishi Kapoor, vice chairman and Chief Information Officer of Investcorp, Zoe Cruz, founder and CEO of Menai Financial Group, and Benjamin Horowitz, co-founder and partner of Andreessen Horowitz. 

The third day will also witness leaders from the hospitality sector attending a panel where they will discuss the latest trends in tourism and its impacts on the real estate sector. 

Speakers who will be attending this panel include Sebastien Bazin, chairman and CEO of Accor, Elie Maalouf, CEO of IHG Hotels & Resorts, Ferit Sahenk, chairman and CEO of Dogus Group, as well as Christopher J. Nassetta, president and CEO of Hilton. 

FASTFACTS

- The conference will feature over 500 speakers and facilitate over 200 sessions, plenary discussions, breakouts and conclaves addressing economic stability, geopolitical tensions, and equitable development.  - The event will focus on strategies leaders need to tackle new challenges in an infinitely connected world.


COP16: Blended financing key to Saudi agri-tech innovation, say experts

COP16: Blended financing key to Saudi agri-tech innovation, say experts
Updated 11 December 2024
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COP16: Blended financing key to Saudi agri-tech innovation, say experts

COP16: Blended financing key to Saudi agri-tech innovation, say experts
  • SALIC has expanded its focus beyond global food security to also strengthen local GDP and address Saudi Arabia’s trade deficit
  • Panelists discussed the importance of government incentives to encourage private sector participation

RIYADH: Saudi Arabia’s innovative use of blended financing is playing a key role in advancing sustainable agricultural practices and addressing food security challenges, a senior executive said at COP16 in Riyadh. 

During a panel session, Hamad Al-Batshan, senior adviser at Saudi Agricultural and Livestock Investment Co., discussed the importance of blended financing as a tool for de-risking investments in agriculture and technology. 

“Blended financing is a significant step forward into the future, adopting new technology and mitigating risks within Saudi Arabia,” he said, emphasizing its role in supporting high-risk sectors such as climate technology. 

Al-Batshan added: “Without having this enablement tool, it will be more challenging to mobilize capital from private sector or traditional investors toward riskier domains.” 

Al-Batshan also praised the creation of the Research, Development and Innovation Authority, which he believes is crucial for linking government and private sector efforts. 

“De-risking investment is the way to go,” he said, highlighting SALIC’s alignment with the RDI strategy to drive sustainable innovation in health, sustainability, energy, and future economies. 

SALIC, a Public Investment Fund-owned entity, has expanded its focus beyond global food security to also strengthen local gross domestic product and address Saudi Arabia’s trade deficit. 

Al-Batshan stressed the need to “transform the local agriculture sector to mitigate the risks of water security and to utilize state-of-the-art technology” to achieve these goals. 

Ahmad Al-Saidalani, founder and CEO of ROOTS, also emphasized the importance of blended financing in advancing early-stage innovations. 

“Blended finance is an incredible tool to de-risk investments for investors in solutions and technologies that address these challenges,” Al-Saidalani said. 

Anne Le More, a UN Food Systems Champion, described blended finance as a niche but essential mechanism for impact investment. 

“Blended finance can really be a useful tool, especially in areas which are more impact investment, where we only look at risks and benefits,” Le More said. She added that concessional loans and technical assistance, especially for startups, make blended financing particularly valuable. 

“The beauty about blended finance is that it really can bring the best of the public world and the private sector world,” she said. 

Panelists also discussed the importance of government incentives to encourage private sector participation. 

“The government clearly needs to incentivize the private sector... sometimes not necessarily through financing, but by improving the investment ecosystem,” Al-Batshan said, suggesting measures such as tax cuts and concessional loans. 

Reflecting on lessons learned from the COVID-19 pandemic, Al-Batshan stressed the urgency of bolstering Saudi Arabia’s supply chain. 

“It’s very important for us to look seriously about the interruption in the world market and try to invest locally to mitigate this type of risk,” he said. 

Addressing hurdles in sustainability investments 

In another panel session, Hasan Al-Abdulgader, head of produced water treatment R&D at Saudi Aramco, outlined the challenges faced by startups and small to medium enterprises in Saudi Arabia’s sustainability sector, particularly in funding and regulatory compliance. 

“SMEs and businesses here in Saudi have been facing a constantly evolving regulatory environment,” he said. 

While he praised the government’s progress in developing robust regulations, he noted that regulatory maturity in the sustainability sector remains a challenge for smaller businesses. 

Al-Abdulgader pointed out that these challenges also present opportunities for innovation, such as Saudi startups using generative AI to help businesses comply with changing regulations and stay competitive in the sustainability sector. 

On the funding side, Al-Abdulgader highlighted the scarcity of venture capital firms in the region that specialize in environmental, social, and governance investments. 

“Private equities don’t have the appetite to wait for 10-plus years to reap the benefits and returns of these technologies,” he said. 

He called for a hybrid approach, involving collaboration among government, universities, and the private sector to de-risk investment and support commercialization. 

“We need more investment, more awareness when it comes to ESG in general, but also a more top-down approach to really incentivize these investment firms and universities to start with low TRL levels,” he added, emphasizing the critical need to sustain startups through the piloting and demonstration stages. 

Jamil Wayne, co-founder of Riffle Ventures, echoed these sentiments, highlighting the long timelines required for high-impact climate technology investments, such as green cement. 

“To create, though, the solutions that are going to be needed to replace the current assets that we use in cement production, we have to almost take a completely different mindset when it comes to investing and waiting for returns,” he said. 

He added: “We’ve gotten spoiled as investors by the software period, where, in that same amount of time, you can have about five to 10 unicorns created and many IPOs. For climate technology, that same timeframe is just the starting point for a solution to reach the market.” 

Wayne emphasized the need for a tailored investment strategy, combining patient capital and government support, to allow climate technology solutions to scale and achieve commercial viability. 

Panelists agreed on the need for innovative funding mechanisms, regulatory clarity, and public-private partnerships to overcome these challenges and accelerate progress in the sustainability sector. 


Saudi Arabia’s PIF wins 2024 Middle East PMO of the Year award

Saudi Arabia’s PIF wins 2024 Middle East PMO of the Year award
Updated 11 December 2024
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Saudi Arabia’s PIF wins 2024 Middle East PMO of the Year award

Saudi Arabia’s PIF wins 2024 Middle East PMO of the Year award
  • PIF is involved in numerous large-scale projects to transform the Kingdom into a global tourism hub
  • It launched its PMO in 2016 and it has since expanded from a five-person team to 77 full-time employees

RIYADH: Saudi Arabia’s Public Investment Fund has been awarded the 2024 Middle East Project Management Office of the Year, recognizing its role in advancing the Kingdom’s Vision 2030 transformation plan. 

In addition to the regional honor, PIF ranked second globally and received three Excellence Distinctions at the PMO Global Awards. 

The PMO Global Alliance presented the awards, highlighting PIF’s leadership in the project management field. “This recognition exemplifies the superior role that PIF is playing as a leading organization in the project management field,” PIF said in a post on X. 

The sovereign wealth fund has been a key driver of Saudi Arabia’s economic diversification efforts since the launch of Vision 2030 in 2016. 

The fund, which manages $925 billion in assets, is involved in numerous large-scale projects to transform the Kingdom into a global tourism hub by the end of the decade. 

“The PMO is considered as one of the critical functions and the main enablers in achieving PIF targets under Vision 2030,” said Saad Al-Kroud, the chief of staff and secretary-general to the board of directors at PIF. 

PIF launched its PMO in 2016 and it has since expanded from a five-person team to 77 full-time employees, according to PMOGA. 

The PMO currently operates with an annual budget of $7 million and oversees 66 active projects valued at $17 billion. PMOGA said that the number of projects managed by PIF’s PMO increased by 76 percent from 2016 to 2023, with the project success rate rising by 94 percent during the same period. 

“We initially were primarily focusing on managing our strategic projects, in addition to establishing our giga-projects and the portfolio companies across various sectors and domains,” said Areej Naqshbandi, senior director and PMO head at PIF. 

Globally, PIF’s PMO ranked second, while SPC Brazil was named the 2024 World PMO of the Year. SPC Brazil’s office manages between 35 and 65 projects annually. 

Other regional winners included Waha Oil Co. from Libya as Africa PMO of the Year, Indonesia’s Persero as Asia-Pacific PMO of the Year, and ING Spain and Portugal as Europe PMO of the Year. Moffitt Cancer Center in the US received the 2024 North America PMO of the Year honor. 

PMOGA, founded in 2017, is one of the largest global communities of PMOs and project management professionals, with members across over 100 countries, according to its website. 


Closing Bell: Saudi main index closes in red at 12,149

Closing Bell: Saudi main index closes in red at 12,149
Updated 11 December 2024
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Closing Bell: Saudi main index closes in red at 12,149

Closing Bell: Saudi main index closes in red at 12,149
  • MSCI Tadawul Index decreased by 5.94 points, or 0.39%, to close at 1,526.38
  • Parallel market Nomu lost 278.70 points, or 0.88%, to close at 31,278.91

RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Wednesday, losing 44.45 points, or 0.36 percent, to close at 12,149.19.

The total trading turnover of the benchmark index was SR6.06 billion ($1.61 billion), as 90 of the listed stocks advanced, while 138 retreated.   

The MSCI Tadawul Index decreased by 5.94 points, or 0.39 percent, to close at 1,526.38.

The Kingdom’s parallel market Nomu dipped, losing 278.70 points, or 0.88 percent, to close at 31,278.91. This comes as 40 of the listed stocks advanced while 44 retreated.

The best-performing stock of the day was Etihad Atheeb Telecommunication Co., with its share price surging by 3.36 percent to SR116.80.

Other top performers included Sumou Real Estate Co., which saw its share price rise by 3.31 percent to SR40.60, and Dallah Healthcare Co., which saw a 3.3 percent increase to SR162.60. 

Saudi Real Estate Co. saw its share price surge by 3.25 percent to reach SR25.40, while Seera Group Holding saw an increase of 3.13 percent to reach SR23.76.

The worst performer of the day was Jahez International Co. for Information System Technology, whose share price fell 7.16 percent to SR31.75.

Anaam International Holding Group also saw a decline of 7.04 percent, with its shares dropping to SR1.32, while Banan Real Estate Co. experienced a 4.87 percent decrease, bringing its shares down to SR7.03.

Moreover, Zamil Industrial Investment Co. saw a decline of 3.94 percent, with its share price dropping to SR31.70, while Acwa Power Co. experienced a 3.23 percent decrease, bringing its share price down to SR383.20.

On the parallel market Nomu, the top performer was Enma AlRawabi Co., with its share price surging by 12.21 percent to reach SR23.90.

In second place was Molan Steel Co., which saw a 10.98 percent surge in terms of share price to SR3.64, followed by Purity for Information Technology Co., which witnessed an 8.63 percent surge in its share price to reach SR21.90.

Nomu’s worst two performers for the day were Leen Alkhair Trading Co., whose share price dipped by 9.83 to reach SR23.40, and Alwasail Industrial Co.’s price dropped by 7.32 percent to reach SR3.04.

Gas Arabian Services Co. followed with a dip of 7.12 percent in its share price, reaching SR18.


OPEC slashes global oil demand growth forecast

OPEC slashes global oil demand growth forecast
Updated 7 min 27 sec ago
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OPEC slashes global oil demand growth forecast

OPEC slashes global oil demand growth forecast
  • OPEC also cut the global demand growth outlook for 2025 to 1.4 million bpd.

RIYADH: The Organization of the Petroleum Exporting Countries on Wednesday revised the global oil demand growth forecast for 2024 to 1.6 million barrels per day down from 1.8 million bpd in the previous report.

Total world oil demand is expected to reach 105.5 million bpd in the fourth quarter of 2024 and 103.8 million bpd in the full year of 2024.

OPEC also cut the global demand growth outlook for 2025 to 1.4 million bpd. Total world oil demand should stand at 105.3 bpd in 2025.

“Growth is expected to be bolstered by strong air travel demand and healthy road mobility, including on-road diesel and trucking, as well as healthy industrial, construction and agricultural activities in non-OECD countries,” OPEC said in its monthly report.

OPEC+ earlier this month delayed its plan to start raising output until April 2025 against a backdrop of falling prices.

OPEC had kept the 2024 outlook unchanged until August, a view it had first taken in July 2023.

According to OPEC, the downgrade for this year owes to more bearish data received in third quarter while the projections for next year relate to the potential impact that will arise from US tariffs.

The 210,000 bpd cut in the 2024 figure is the largest of the five reductions OPEC has made in its monthly reports since August. In July, OPEC had expected world demand to rise by 2.25 million bpd.

“The bulk of this revision is made in the third quarter, taking into account recently received bearish data for the third quarter,” OPEC said in the report.

China accounted for part of the latest downgrade, as did India, other Asian countries, the Middle East and Africa, OPEC said. OPEC now expects Chinese oil demand to rise by 430,000 bpd in 2024, down from 760,000 bpd in July.

After decades as the dominant driver of expanding oil consumption, China’s crude oil imports are on track to peak as soon as next year as transport fuel demand begins to decline for the world’s top crude buyer.


Qatar’s real estate market shows resilience with luxury and office sectors leading growth

Qatar’s real estate market shows resilience with luxury and office sectors leading growth
Updated 11 December 2024
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Qatar’s real estate market shows resilience with luxury and office sectors leading growth

Qatar’s real estate market shows resilience with luxury and office sectors leading growth
  • Over the past 12 months, villa rents declined by 7.5% to an average of 15,085 Qatari riyals per month
  • Apartment rentals in Qatar’s premium locations have emerged as a key growth driver

RIYADH: Qatar’s real estate market is showing resilience amid shifting dynamics, with a clear divergence between the performance of luxury and standard offerings, a new report showed. 

Over the past 12 months, villa rents declined by 7.5 percent to an average of 15,085 Qatari riyals ($4,139) per month, while luxury apartment rents rose by 2.3 percent to 11,200 riyals per month, according to the latest Qatar Real Estate Market Review from Knight Frank. 

The market has been evolving in recent years, driven by government reforms and infrastructure investments aimed at fostering long-term economic growth and diversification.

The government’s introduction of property-linked residency schemes and designated freehold zones for expatriates has spurred activity in the residential market. 

For apartments, this has meant stronger demand for premium locations like the Pearl Island and Lusail, reinforcing their status as highly coveted destinations for both living and investment. 

Apartment rentals in Qatar’s premium locations have emerged as a key growth driver, reflecting shifting tenant preferences. Areas such as West Bay and the Marina District have become hotspots for expatriates and professionals, with rental increases of 9.6 percent and 3.2 percent, respectively. 

In contrast, villa rents have continued to decline, with key neighborhoods like Nuaija and West Bay Lagoon seeing even steeper drops of 20 percent and 9 percent, respectively. This reflects a supply glut and shifting tenant priorities toward more compact, urban living. 

Price office spaces 

Despite some pressures in the residential sector, Qatar’s office market is experiencing growth, supported by demand for prime office spaces. Grade A office rents have risen by 3.2 percent over the past 12 months, driven by increased activity from government ministries, state-owned enterprises, and multinational firms. 

Prime districts such as Lusail have reported a 3 percent annual increase in rents, with rates reaching 92 riyals per sq. meter per month. West Bay remained a leading destination, commanding rents as high as 150 riyals per sq. meter for premium spaces. 

This growth aligns with Qatar’s National Vision 2030, the report stated, adding that the vision aims to foster a sustainable and diverse economy, with plans to double the size of the economy on track, supported by an expected increase in government revenues to 2014 levels this year. 

The report noted that an emphasis on high-quality, contemporary spaces continues to drive tenants. away from secondary locations, where rents have dropped to 50 riyals to 70 riyals per sq. meter. This shift reflects the broader “flight to quality” trend, with tenants increasingly prioritizing modern facilities in central business hubs. 

Hospitality sector 

The Qatari hospitality market continued to expand, driven by a series of major developments and a growing influx of tourists. 

The country’s efforts to diversify its tourism industry have led to the creation of new attractions such as the Qatar National Museum, Meryal Water Park, and the upcoming $5.5 billion Simaisma theme park. 

“Qatar’s tourism sector has solidified its position as a vital driver of economic growth, achieving an impressive 31 percent growth in 2023 to reach a historic high of 81.2 billion riyals, which equates to 10.3 percent of the gross domestic product,” the report stated. 

This growth has fueled the hospitality market, with more than 1,300 new hotel rooms added in 2023 alone. The report noted that the quality room supply is expected to grow further, with projections reaching 47,290 keys by 2026.